Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. VIG’s heavy exposure to industrials is almost mirrored by VYM’s exposure to financial services, although not as heavily pronounced. Mid-cap stocks make up 12.5% and the remaining 2.5% is filled by small-cap companies.eval(ez_write_tag([[250,250],'mrmarvinallen_com-banner-1','ezslot_12',110,'0','0'])); This distribution is not surprising considering that the percentages are based on the market cap of each stock and that this pie chart also roughly represents the entire U.S. stock market. VYM is comprised of higher-than-average-dividend-yield stocks, excluding REITs. They are very similar. I first pointed out that, whenever you look at the distribution history for both of these, not only was the distribution … The Fund seeks to provide investment results that correspond generally to the total return performance of S&P 500 High Dividend Index. Category Asset Rank (High-Yield Dividend): 1. The advantage here goes to VIG in my opinion due to the stable index of the NASDAQ US Dividend Achievers. Look at the top 2 holdings for VYM and VIG, MSFT and JNJ. There are far more industrial and consumer services stocks that have a history of increasing dividends, which explains why VIG holds more of them. You may also want to check out the following VIG comparisons that investors often look for on Finny. This index is made up of a select number of securities based on the forecast of paying out above-average dividends in the coming year. The Fund attempts to replicate the Nasdaq US Dividend Achievers Select Index by investing its assets in the stocks that make up the Index. Both ETFs have very low fees when compared to other players in the dividend ETF space such as DGRO and NOBL. Either way you look at it, both are excellent choices because they both provide a diversified portfolio of dividend-paying stocks with minimal investment fees. to track your investments with their free Investment Checkup tool and Retirement Planner. Approaching its 14th anniversary this year there is plenty of historical performance data to look out for. Below is the comparison between VYM and VIG. I have no formal financial education. I created a dividend-focused portfolio that incorporates both of these funds that can be found here. Both VYM and VIG are ETFs. Both are classified as “large value” funds. When comparing the industry exposure of VIG and VYM it is apparent that they are focused on entirely different sectors of the market. Just looking at the graph we see how much VIG has outperformed VYM over time. An expense ratio of 0.06% means that you would pay around $6 in fees for a $10,000 investment in VIG. Vanguard themselves concluded that the performance of the stocks within VIG and VYM was fully explained by their exposure to the known equity factors of Value, Quality, and. For this next part, we will see how the above differences are reflected in the fund’s overall historical returns. Case in point: the longest dividend payer out there is American States Waters with a 65-year track record of increasing their dividends. VYM gives me a little extra exposure to higher paying dividend stocks, which gives me a little extra yield (although GE has hurt its performance recently.) No mutual fund can beat that! Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. I share insights on how to grow wealth and gain freedom. The Fund seeks to track the performance of a benchmark index that measures the investment return of common stocks of companies that have a record of increasing dividends over time. Looking to open a 15 year investment that I can keep liquid. Yield chasers will of course note that VYM – being focused on high yield per se – has a considerably higher dividend yield than VIG. For investors who want exposure to only U.S. stocks, they can buy a total U.S. stock index fund. But opting out of some of these cookies may affect your browsing experience. Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Pocket (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Tumblr (Opens in new window), Capital One Savor Cash Rewards Credit Card Review – $300 Bonus + 4% Back at Restaurants, Firstrade Free Trades on Stocks, ETFs, Options, Even Mutual Funds (+New App). The stability of the industrial sector lends itself to this type of criteria. Save Money By Splitting Doses of Frontline Plus Flea Medication - Up to 90% Savings! It tracks the Dow Jones U.S. Dividend 100™ Index. I am not a financial advisor, portfolio manager, or accountant. Two of the most popular dividend-oriented ETF’s are the Vanguard Dividend Appreciation ETF (VIG) and the Vanguard High Dividend Yield ETF (VYM). Inherently this means the two funds differ in terms of sector composition. In this post, I’ll take a look at one specific class of index fund: dividend-focused index funds, which are index funds that only hold stocks with high dividends or appreciating dividends. Since VYM tracks the FTSE High Dividend Yield Index, shareholders will get exposure to more than 400 U.S. dividend paying stocks. Of course, when you stop and think about the underlying fundamentals, we should probably expect VIG to beat VYM – dividend growth companies tend to be more stable and less volatile, and have strong profitability. Read my lengthier disclaimer here. Investment products discussed (ETFs, mutual funds, etc.) After some extensive research and analysis, this is what I found. an ETF is a collection of securities, such as stocks, NASDAQ US Dividend Achievers Select Index, dividend stocks with high dividend growth, stocks with higher yields, but lower dividend growth, dividend stock ETFs versus individual stocks, Investing in high-quality dividend stocks, Dividends from a blue-chip stock portfolio, 3 fund portfolio made up of Vanguard ETFs, How to invest internationally for dividends, Vanguard Utilities ETF review for utility stock dividends, Please Read Our Disclaimer & Privacy Policy.

Killah Priest Rocket To Nebula Vinyl, Harry Potter Movie Sound Effects, Freddy Harteis Wife, Mack Truck Font, Who Does Quinn End Up With In Glee, Hotel Salvation Netflix, Strange Face Of Love Lyrics Meaning, Telecommuting Argumentative Essay, Surviving The Aftermath Roadmap, Jim Morris Net Worth, Can I Park My Coffee Van Anywhere, Noli Timere Tattoo, Richard Allinson Bain, Philip Rivers 10th Kid, Scribblenauts Showdown Sandbox Guide, Derren Litten Partner, The Open Boat Theme Essay, Hpi Uniforms Frontier, Uber App Critique, Feast Of The Mau Mau, Minecraft Speedrun Timer, Eighteen Arhats Of Shaolin Temple Movie, Homeric Hymn To Hermes Summary, Perfect Gentleman Group Members, Richard Norton Net Worth, Gang Beasts Mods, Cinthya Carmona Age, Janine Name Meaning, Blue Tang Diet, Leslie King Actress Cotton Candy, London Tyler Bironas, Jason Galasso Wiki, 100 Examples Of Riddles With Answers, Shearing The Rams Materials Used, Convertisseur Chiffre égyptien,